The Department of Energy (DoE) has launched the fourth round of the Green Energy Auction (GEA-4), releasing the Terms of Reference (ToR) that outline the auction process.

The auction aims to add 9,378 megawatts (MW) of new renewable energy (RE) capacity, including ground-mounted solar, roof-mounted solar, floating solar and onshore wind projects.

This round is the first to include Renewable Energy and Energy Storage Systems, featuring 1,100 MW of solar capacity paired with Battery Energy Storage Systems. These projects aim to enhance grid reliability and meet the growing electricity demand.

“The release of the ToR for GEA-4 underscores the Philippines’ commitment to transitioning to clean energy while ensuring energy security. By ensuring a transparent and competitive selection process for RE projects, we are accelerating the shift toward a more sustainable, secure and resilient energy system,” said Undersecretary Rowena Cristina L. Guevara.

The DoE’s Notice of Auction, released on 12 March, signals the start of the bid, which will proceed once Department Circular DC2025-03-004 takes effect. The circular introduces updated guidelines for the Green Energy Auction Program, clarifying supplier qualifications and ensuring fair pricing for RE projects.

To qualify, suppliers must hold a RE service contract or possess a Certificate of Authority under the Revised Omnibus RE Guidelines. The Green Energy Tariff for GEA projects will also be subject to indexation by the Energy Regulatory Commission, ensuring tariff rates remain fair and responsive to market changes.

Winning projects will receive a 20-year supply contract starting from the commercial operation date. Suppliers must register with the DOE by submitting the required documentation, and a list of qualified bidders will be published before the pre-bid conference.

For IRESS projects, only solar facilities not yet commercially operational or lacking a Provisional Authority to Operate (PAO) or Certificate of Compliance (COC) may qualify. Existing solar facilities with curtailed operations under their PAO/COC may also be eligible.

IRESS projects must meet technical standards, including a minimum energy storage system inverter ratio of 0.2, round-trip efficiency of 85 percent, and a minimum storage duration of four hours.

Registration for qualified suppliers begins one working day after the ERC publishes the Green Energy Auction Reserve Price.